TWN Info Service on WTO and Trade Issues (Apr21/11)
21 April 2021
Third World Network

WTO DG to commission external review of Secretariat's performance
Published in SUNS #9330 dated 21 April 2021

Washington DC, 20 Apr (D. Ravi Kanth) -  The World Trade Organization director-general Ms Ngozi Okonjo- Iweala plans to commission an external agency to review the Secretariat's functioning, in a decision that appears to be inconsistent with the Marrakesh Agreement that established the WTO in 1995, said people familiar with the development.

Announcing her decision at a meeting with the Secretariat staff on 19 April, the DG told the staff that they should deliver results, informing them that she is commissioning a private agency to review the WTO Secretariat's overall performance, said people familiar with the development.

She exhorted the staff to produce results and be productive in their work.

It is somewhat puzzling that in a member-driven and rules-based intergovernmental organization where the WTO Secretariat has a limited and defined role as prescribed in the Marrakesh Agreement, how an external agency could be deployed for improving the functioning of the Secretariat.

The DG's comments on the need for the Secretariat to produce results, said a trade envoy, seems to be contrary to Article 4 of the Marrakesh Agreement, which states unambiguously that the DG and staff "shall refrain from any action which might adversely reflect on their position as international officials. The Members of the WTO shall respect the international character of the responsibilities of the Director-General and of the staff of the Secretariat and shall not seek to influence them in the discharge of their duties."

On 16 April, Ms Okonjo-Iweala sent a missive to members, stating that "consistent with my statement at the Special General Council meeting of 15 February 2021 to strengthen the WTO Secretariat to enable it to provide cutting edge services to Members in all relevant areas of WTO's work, and ensure that it takes account of the changing dynamics of the global economy and priorities of Members, the purpose of this communication is to advice delegations that I have decided to launch an external review of the WTO Secretariat."

Such an external review, she said, "is to provide an independent and objective assessment which would include: (1) aspects that would enable the WTO Secretariat to benchmark itself against best practices, especially around culture and organizational structure, with similar organizations around the world, (2) assess how to achieve greater efficiencies; and (3) identify a robust set of initiatives to enhance the WTO Secretariat's provision of support and services to Members, including the effective functioning of the WTO."

"I am aiming to have this review completed by the middle of the year and will keep members advised by regular updates, including through the Committee on Budget, Finance and Administration," she said in her email to members.

Without seeking the approval of the members, as the WTO functions solely on a member-driven process, unlike other international organizations, the DG is arbitrarily deciding on issues which run against the fundamental principles set out in the Marrakesh Agreement, the trade envoy said.

If any member opposes her initiative in the Committee on Budget, Finance, and Administration on outsourcing the review to an external agency, then it will come to a halt, said another trade envoy, who preferred not to be quoted.

In the Committee on Budget, Finance, and Administration meeting in October 2019, the United States had opposed a new portal launched by the World Trade Organization, International Trade Centre (ITC), and UNCTAD for collating the latest progress in achieving the trade-related United Nations Sustainable Development Goals (SDGs), on grounds that the decisions made at the UN are not relevant to the WTO.

Aside from the Secretariat's performance, the DG spoke positively for more than 20-odd minutes on the meeting she had organized on 14 April with four trade ministers, representatives of the pharmaceutical companies, and other stakeholders, suggesting that there has been a frank talk of the issues concerning vaccine equity and the un-utilized production capacity for vaccines in companies.

Ms Okonjo-Iweala also underscored the importance of the trade and health initiative proposed by the Ottawa Group of countries, but did not suggest how she will take the issue forward, said people, who preferred not to be quoted.

On a separate issue on the evolving interface between the WTO and the World Bank, the DG said that the two organizations are negotiating on exchanging young professionals recruited by the WTO to the Bank, said people, who asked not to be quoted.

She said that she started off her career as a young professional at the World Bank, suggesting that her grounding in the Bank was very useful, people said.